By Aisha Al-Muslim

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (May 30, 2019).

DowDuPont Inc. expects to record impairment charges of $800 million to $1.3 billion primarily due to goodwill in its current quarter ending June 30.

The Wilmington, Del., company, which recently spun off its materials-science business, said Wednesday that the goodwill impairment is a result of revised financial projections of the current industrial biosciences reporting unit reflecting unfavorable market conditions.

The revision was driven by slowed demand in the biomaterials business unit and challenging conditions in the U.S. bioethanol market, the company said in a filing with the U.S. Securities and Exchange Commission.

The spinoff of DowDuPont's materials-science business was completed April 1 and turned into its own company, Dow Inc. The spinoff was the first big step in DowDuPont's plan to divide itself. DowDuPont expects to complete separation of its agriculture business into an independent public company on June 1, it said in the filing.

Once the final spinoff is complete, the company will be renamed DuPont de Nemours Inc. It will continue to hold its specialty products business.

The impairment charge doesn't impact the specialty products division's fiscal 2019 guidance, the company said. DowDuPont reaffirmed its financial guidance for the second quarter and full-year 2019 for the specialty products division.

The division expects second quarter guidance of down low-single digits for organic net sales and down low-single digits for adjusted operating Ebitda. For the full year, the division expects organic top line growth of 2% to 3% and 3% to 5% growth for adjusted operating Ebitda.

Ed Breen, chief executive of DowDuPont and executive chairman-elect of the future DuPont, is scheduled to give a presentation Wednesday at a Bernstein conference in New York.

Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com

(END) Dow Jones Newswires

May 30, 2019 02:47 ET (06:47 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
Dowdupont Inc. (NYSE:DWDP)
Historical Stock Chart
From Jan 2025 to Feb 2025 Click Here for more Dowdupont Inc. Charts.
Dowdupont Inc. (NYSE:DWDP)
Historical Stock Chart
From Feb 2024 to Feb 2025 Click Here for more Dowdupont Inc. Charts.